Why is "Ubi latrina est?" wrong?
Questions tend to raise the verb to a position after the question word like in English. Your rendition isn't necessarily wrong, though.
More specifically, the focus of the question gets raised.
It shouldn't be, report it.
♫ Where's the bathroom, where's the bathroom, I need to use the bathroom, tell me that you have a bathroom in this hovel you call home ♫